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The families of some victims of the Lac-Mégantic disaster object to a Quebec group's effort to be appointed as n official creditors' committee in MM&A Railway's bankruptcy proceedings. (Graham Hughes/THE CANADIAN PRESS)
The families of some victims of the Lac-Mégantic disaster object to a Quebec group's effort to be appointed as n official creditors' committee in MM&A Railway's bankruptcy proceedings. (Graham Hughes/THE CANADIAN PRESS)

Lac-Mégantic

Families of victims want committee to stay out of MM&A case Add to ...

The families of several victims of the deadly rail crash in Lac-Mégantic, Que., are opposing a bid by a committee involving the Quebec government, municipal authorities and other victims for official standing at a railway’s bankruptcy proceedings in the United States.

The families of 18 of the 47 victims of the July 6 derailment and explosion told a U.S. court in Maine that they object to the Quebec group’s efforts to be appointed as an official creditors’ committee representing the province, the municipality and some wrongful death and personal injury and property damage claimants.

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“The families who lost loved ones believe they have specific interests that should be defended by their own committee,” their lawyer, Daniel Cohn, said in an interview.“They welcome help from the government, but they understand that [the government] could [use compensation] for cleaning environmental damage. They want their fair share.”

Other parties have also objected, including the court-appointed trustee overseeing Montreal, Maine & Atlantic’s bankruptcy. A hearing is set for Oct. 1 in Bangor, Me.

Last month, the Quebec government appointed Luc Despins, a bankruptcy specialist, to make representations on behalf of the committee. In his motion, he urged the judge to recognize the committee that represents creditors with the “largest claims” against the railway and the “entire spectrum” of victims.

“I want to be very clear: There is no animosity among the Quebec government, the City of Lac-Mégantic and the victims,” Mr. Despins said Tuesday in an interview. “Quebec has already said that victim compensation was the priority.”

Robert Keach, the court-appointed trustee in the proceedings, said inclusion of the creditors’ committee was unnecessary because he represents the interests of all claimants. Recognizing the Quebec committee would increase administrative costs of the case and “sap what limited resources of the debtor exist,” Mr. Keach wrote.

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